Management vs Administration; Management is an art and science; Management as a professionSource: Management – C. B. Gupta Management Vs Administration Divergent views exist on Management and Administration 1. Administration is above Management 2. Administration is Part of Management 3. Administration and Management are One Administration is above Management This view is held by various American experts in management – Sheldon, Florence, Lansburg, Haimann, Milward, McFarland, Spreigel, Tead and Schulze. • Administration is a top-level function while management is a lower-level function. • Administration is a determinative (thinking) function while management is an executive (doing) function. • Administration involves policy formulation whereas management is concerned with the execution of policies and supervision of day-to-day operations. • Thus, Administration is superior to management. Administration is part of Management • European school of thought – E.F.L Brech, Kimball and Kimball, Richman and Copen. • Management comprises both policy-making and execution. • Administration is that part of management which involves doing routine things in a known setting. • Thus, the European viewpoint is exactly opposite to the American viewpoint. Administration and Management are One • Fayol, Newman, Chester Barnard, Terry, Louis A. Allen, Harold Koontz and Cyril O‟Donnell • Management and Administration are used interchangeably because both involve the same principles and functions. • Somehow, the word „management‟ has become popular in business enterprises where economic performance is of primary importance. On the other hand, the term „administration‟ is preferred in government departments, religious trusts, educational institutions and other nonbusiness organisations. • To resolve the terminological conflict, management may be classified into: (i) Administrative management; and (ii) Operative management Administration management involves determination of objectives and policies whereas operative management is primarily concerned with the execution of plans for the achievement of the objectives. Board of Directors Managing Director Production manager Plant superintendent Management Administration Supervisor At every level of management, an individual manager performs both types of functions. Higher-level managers spend a major portion of their time on decision-making and policy formulation (administration) while lower level managers spend comparatively greater time on execution of plans and policies (management). This approach is more logical because; (i) Two separate sets of people are not required to do administartive and managerial functions; (ii) Planning and doing are two faces of the same coin and it is not wise to separate them. Distinction between Administration and Management Points of distinction Nature Scope Level Influence Administration Determinative (thinking) Determination of major objectives and policies Top-level Decisions are influenced by public opinion and other outside forces Management Executive (doing) Implementation of policies Mostly middle- and lowerlevel Decisions are influenced by objectives and policies of the organisation. Directing and organising Technical and human skills Business organisations Managing Director, General manager, Sales manager, Branch manager, etc. Main functions Planning and Control Skills required Usage Illustrations Conceptual and human skills Government and public sector Minister, commander, commissioner, Registrar, Vicechancellor, Governor, etc. Management as an Art and Science • Management as an Art Art involves the practical application of personal skills and knowledge to achieve concrete results. Main elements of art: (a) Personal skills (b) Practical know-how (c) Result-orientation (d) Creativity, and (e) Constant practice aimed at perfection Management as an art 1. A manager applies his knowledge and skills to coordinate the efforts of his people. 2. Management seeks to achieve concrete practical results in a given situation. Eg. Profit. Management is creative. The success of a manager is measured by the results he achieves. Management is a personalised process. Mastery in management requires a sufficiently long period of experience in managing. 3. 4. 5. Management as a Science Essential elements of science: 1. Science is a systematised body of knowledge pertaining to a field of enquiry. Science establishes cause and effect relationship between variables. It contains principles and theories developed through continuous observation, experimentation and research. The principles have universal applicability. The organised body of knowledge can be taught and learnt in the classroom and outside. 2. 3. 4. Management is a science because it contains all the essentials of science. 1. 2. 3. 4. There is now a systematised body of knowledge – principles and theories. Principles of management have been evolved through practical experience and theoretical research. Managerial principles have a wide and repetitive range of application through case studies. Management theory and principles can be taught in classrooms and in industry. Nature of science of Management • Management is a social science: study of human behaviour flexible principles principles cannot be tested through experiments. • Management is an inexact science or soft science as it is still developing. • Management is an applied science as the principles have to be applied in practice. • Management is an inter-disciplinary science – Economics, Mathematics, Sociology, Psychology and Anthropology. Management is a combination of science and art. “Essentially, managing is the art of doing and management is the body of knowledge which underlies the art” said Koonntz and O‟Donnell. Science and art complement each other. The science of management may be learnt in the classroom but practice is required to make its successful use. Thus, the theory (science) and practice (art) of management go side by side for the efficient functioning of an organisation. Management as a profession Essential attributes of a profession: 1. A well defined and organised body of knowledge. 2. Learning and experience 3. Entry restricted by qualifications. 4. Recognised national body 5. Ethical code of conduct 6. Dominance of service motive Management is not a full-fledged profession, but has some essentials of a profession. • There exists now a systematised and reasonably welldefined body of knowledge – theories and principles. • Formal education and training are becoming increasingly popular among managers. • National level associations of managers have been formed in most of the countries. Eg. AIMA in India. • A code of professional conduct has been formulated. • There is increasing recognition of the social responsibilities of managers. There are several obstacles in the way of management being recognised as a profession. 1. There is no universally acceptable criteria for the evaluation of managerial performance. 2. Unlike in other professions, managers do not have a single homogeneous group of clients. 3. Management is essentially an art or practice and persons without a degree or diploma in management are not necessarily less efficient managers. 4. The theory of management is still evolving and new principles are being developed.